daytrades april 16 pre-market, page-3

Today's Trading Stocks

Market Direction: Another night, another positive close on Wall St. Our market should continue to march higher today consolidating its position over the 5,000 point barrier. The weekly jobless claims in the US increased last night against an expected fall but the market rally continued anyway. The higher the indices go the more concerned I get about how large the correction will be when it inevitably arrives.

ARM: The company confirmed yesterday that drilling has started at its Capricorn South East manganese Project. The price has paused in the past two days so it is hard to call which way it will head today. However the number of people now watching the stock is likely to increase from now on as results get closer. News Due: Commencement of drilling operations at the Capricorn South East Manganese Project. Disclosure: Holding ARM

OVR: The gap in OVR down to 11 cents was closed yesterday as prices retraced from the recent high of 12 cents. I expect 10 cents will now act as a support level. Given that the stock has run from 7.5 cents to 12 cents I will not be surprised to see a consolidation period. However with news on the commencement of exploration likely at any time it shouldn't be too long before an attempt to break resistance at 12.5 cents is made. This could correspond with a golden cross which is likely to occur in the next week provided prices hold above 10 cents. News Due: Details of the exploration program for 2010 at the Yukon Base Metals Project in the Yukon, Canada. Disclosure: Holding OVR

LCY/LCYO/LCYOB Another strong performance by LCY yesterday however the options are lagging the heads by about two cents. It is clear that some large holders of LCYOB are cashing in their investment given the size of the trades going through. Even though the stock has risen on strong volume for three days running, the indicators are no where near overbought and so prices may have further to run. If 21 cents gets cleared then I expect 25 cents to be achieved. News Due: Details of potential JV's or investment in share by interested Chinese parties. Disclosure: Holding LCYOB

The company put out a gentle reminder to the market about how valuable it believes the Bauxite Project in Laos is to the company. The market certainly responded, sending ORD to a high of 5 cents for the day which is also an area of resistance. Volume was the strongest it has been in months with 15m traded. The stock was then sold down during the afternoon to its close of 4.5 cents. The chart indicators now look bullish with the slow stochastic and RSI rising and the MACD having crossed yesterday. There was a hint in yesterdays announcement that the company might look at other ways to ensure that value is reflected in the company's share price. I have no idea what options they might consider but for this reason it is worth keeping an eye on ORD in the near term. News Due: Updates on the progress of the feasibility for the Bauxite Project in Laos. Disclosure: Holding ORD


Good luck today.